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This assignment is due soon, I want to check my answers before I submit them. Please make sure to answer within 0.5 to 2 hours.

This assignment is due soon, I want to check my answers before I submit them. Please make sure to answer within 0.5 to 2 hours. Please submit what you have within 2 hours, or this question is wasted and will be thumbed down. Thank you for your help in advance!image text in transcribed

Power Industries has two support departments in their factory: Maintenance (M) and Personnel (P). They also have three operating departments: Assembly (A), Finishing (F), and Boxing (B). Maintenance costs are allocated based on square footage and Personnel costs are allocated based on number of employees. Costs of each department and other data are summarized below. M P A F B Total Cost (000's) $600 $350 $1,000 $600 $800 3,350 Square feet 600 200 3,125 2,150 2750 8,825 # of employees 30 10 110 85 25 260 Required: Show your work and take all calculations to four significant digits 1. Using the Step-Down Method (Personnel First), allocate support department costs to the operating departments. (8 Marks) 2. What is generally considered to be the most accurate method of allocating support department costs? Why? (2 marks)

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